A downward-sloping portion of a long-run average total cost curve is the result of
A) economies of scale.
B) diseconomies of scale.
C) diminishing returns.
D) the existence of fixed resources.

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing production leads to lower average costs, resulting in a downward-sloping long-run average total cost curve.

A Downward-Sloping Portion of a Long-Run Average Total Cost Curve